The Importance of Consumer Behavior to Marketers Abstract In this report, we are going to discus the importance of consumer behavior study, knowledge and understanding to marketers, and how it will have a positive impact on the organization growth and revenue. We are also, going to discuss the definition, types and the basic concepts in consumer behavior. The motives and the affecting factors will also be addressed in this report as well.
A summary of the major points will be highlighted about the importance and usefulness of a study of consumer behavior in the marketing activity of any organization, which imposes the need to focus on activities that will lead to it, and one of the most important activities is the marketing research. Table of contents Abstracti 1. 0Introduction1 2. 0Basic concepts in consumer behavior2 2. 1The definition of consumer behavior2 2. 2The types of consumer behavior2 3. 0Motives, importance and affecting factors of consumer behavior 3 3. 1The motives of consumer behavior3 3. 2The importance of consumer behavior4 . 3Factors affecting consumer behavior4 4. 0The importance of studying consumer behavior for marketers5 5. 0Conclusion5 6. 0Reference list5 1. Introduction The behavior of individuals is affected by many factors and their influence varies depending on these factors. There is a clear difference in the behavior of individuals and this is because different people are coming from different countries, regions, races, laws, customs, cultures and other factors. The study of consumer behavior has been encouraged and conducted by various schools of economic and behavioral. Nowadays, It has become a fundamental nd important subject and occupies first place for organizations and as a result of: • The high number of products in the market and the diversity • The existence of alternative products • The intensification of competition • Evolution and diversity of consumer tastes 2. Basic concepts in consumer behavior Consumer behavior is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups.
It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people’s wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. 2. 1 The definition of consumer behavior Before turning to the definition of consumer behavior we must first determine what is meant by the consumer, which is defined as: “The person who buys or has the ability to buy goods and services offered for sale, in order to satisfy the needs and desires, personal or family. ”
From this definition we understood that each person is a consumer, and the fundamental motivation for this is to satisfy the needs and desires. Consumer behavior has got the following definitions: – This act, which highlighted in the search for consumer use or purchase of goods, services and ideas, which will satisfy the desires or needs, according to its potential purchasing power available. – All acts and actions of direct and indirect, by the consumers in order to obtain a good or service in a particular place and at a specific time. – The range of activities related to mental and muscle differentiation, the valuation process and access to goods, services, ideas and how to use them. 2. 2 The types of consumer behavior There are two different types of consumers: individual consumer and industrial or institutional consumer. The individual consumer is the one that looks for a good or service purchased and used for private or domestic. The second type of industrial consumers is the consumer, which includes all public and private organizations. These organizations to search and purchase of goods, materials or equipment to enable them to implement the objectives prescribed in the plans and strategies.
The purchase of the raw materials and components will be used for the production. The buyer is often used to buy various tools and equipment that will enable his organization to provide services and goods for the individual consumer or other organizations. 3. Motives, importance and affecting factors of consumer behavior 3. 1 The motives of consumer behavior The study of the key motive areas are very important in the study of consumer behavior, because it will identify the causes of different individuals, their behavior and their actions.
These internal factors in any individual will lead him to a certain behavior in order to achieve and satisfy his needs. Marketers need to study and understand the motives that make the consumer to take a particular decision to buy. But, unfortunately, the process of discovering and observing these motives can not be dealt with directly, but can be inferred and help conducting research to discover these motivations. There are multiple categories for motives, such as unconscious, unconscious rational, emotional primary or acquired.
The individual’s needs and objectives are the main source of motivation, and it is expected of each individual a certain level of saturation for each of them. There is a link between the concept of motives and the concept of needs. The need arises from a sense of inferiority or the deprivation of something of the consumer, leading to influence the internal forces to individual motives for the purpose of satisfying this need, where a certain level and a certain degree of saturation that is needed here affect the motivation and behavior in motivated behavior. . 2 The importance of consumer behavior The study of consumer behavior captured the attention of many individuals, especially consumers, students, researchers and marketing people. The benefit of studying the consumer behavior for each party as follows: A- For consumers: It helps to understand the process of purchase and consumption of goods and services. In particular, to know what to buy and why and how you get them, and help them to understand the factors or influence that affect the behavior of purchasing power or consumer.
B – For the students: It helps to understand the relationship between personal and environmental factors that lead the combined effect in the behavior of the individual. C – For the marketers: It helps them in the following fields: 1- Discovery of appropriate marketing opportunities: In light of strong competition in the market, your organization can benefit from the marketing opportunities available to them. This can be done by marketing research, and of possible opportunities such as providing new products or find new users in the current markets. Market Segmentation: It aims to segment the market into groups or distinct segments of consumers, who look alike with each other within each sector, but they differ from one sector to another. Organizations can choose one or more of these sectors to be its market target and can be based on several criteria, such as psychological and behavioral standards. Organizations are required to analyze their markets and to be familiar with the characteristics of consumers to identify their needs, desires, purchasing ehavior and consumption on a regular basis to ensure their survival and growth in the market. – Design the competitive position of the items of the organization: The segmentations of the market does not guarantee the survival of the organization in the market, but they must choose a competitive location for their goods. This will be achieved by understanding the full and exact behavior of targeted segment. The organizations may use different advertising means or any other means as per consumers’ choice on the extent of discrimination goods. 3. 3 Factors affecting consumer behavior
In order for an organization to succeed in its marketing plan, it should be more accurate once it identifies the consumers. 1- Cultural factors: have a huge impact on consumer behavior, which will influence in the purchase decision and as illustrated in sub-culture and social class. 2- Social factors: various factors that affect the consumer and it is reflected on his behavior, such as reference groups, last name and roles and status. 3- Psychological factors: Individuals’ decision to purchase is affected by the below major psychological factors: A- Motivation B- Perception
C- Education D- Values and Belief 4- Personal factors: Buyers’ decision is affected by his personality and personal factors represented by the following: A- Status: Persons affected by the positions they occupy in the scale of their work and reflected on the goods and services they need and the degree it fits their jobs. B- Lifestyle: Individuals can participate in the same culture, social class and job, but they may differ in their lifestyle. Individual life style can be traced to the individual living in the surrounding and activities carried out by various interests and opinions.
C- Personality: The frequency of using this word among individuals is to distinguish them and to set the standard evaluation of the individual on the basis of reacting and addressing the event. D- Age: The below are the different stages in life: •The nature of childhood until the age of ten •The stage of adolescence until the age of fifteen •The stage of young people up to the age of thirty •The stage of adults until the age of sixty •The stage of aging 4. The importance of studying consumer behavior for the Marketers The study of consumer behavior is very important activity within the organization.
The importance and the benefits of studying consumer behavior can be summarized as follows: A- The study of consumer behavior and consumer needs help the organization to design their products in a way that ensures the acceptance by its consumers, which leads to increase the rates of purchasing, and the revenues. The more the organization is aware of their customers and understands them better, the better it can approach them for their service and satisfy their needs and desires in order to achieve its goals and objectives.
B- The modern marketing concept is based on the idea that the consumer is the starting and ending point in the marketing process. As the previous marketing philosophies (productivity and sales) are proven failures and shortcomings with the passage of time. This is because of this neglected study of the behavior and actions of consumers and focus on the nature of how to sell products only. In order for organization to succeed, it should create marketing activities based on the analysis of consumer behavior to fit in and adapt to serve the interests of the organization and achieve its objectives, especially in the long term.
C- The study of consumer behavior may lead the organization to discover new market opportunities, which might be a result while searching for the unsaturated needs and desires of consumers. The organization can invest to produce products in order to satisfy those needs, which will raise their competitiveness, increase market share, and is what ensure the growth and expansion. D- The study of consumer behavior and knowledge of its purchasing power will help the organization’s policies.
The successful organization is the one can provide goods and services that satisfy the wishes of the consumers within their purchasing capabilities. E- The study of consumer behavior helps the organization making the right policies for their promotions. By knowing the consumer preferences and tastes, the marketers can select and design the appropriate promotional mix to influence them and persuade them to consume their products. F- The study of consumer behavior is of crucial importance in determining the distribution outlets for the products of the organization.
The distribution plan can be formulated, and they can decide on whether to depend on their point of sale and to focus on personal selling, or relying on intermediaries and agents of wholesale buyers and resellers, which depends on the efficiency of the intermediaries in influencing the purchasing behavior of consumers. G- The study of consumer behavior will enable the organization to analyze markets, determine the target sectors, helping them to study the habits and motives of the buying consumers, which lead to an accurate knowledge of who s the exact consumers, and how, when, why they buy, and what are the factors and conditions that affect the behavior and on the purchasing decision. H- The study and analysis of consumer behavior can be organized to assess the performance of marketing, and help them to identify the strengths and weaknesses. Through the knowledge of consumers’ opinion about the product and the manner in which it was submitted that the Organization of the treatment marketing either to preserve the product and continue to submit and display , or is amended or the manner in which it was submitted, or canceled altogether.
All of this is based on the opinion and desire as a consumer-Faisal, in the marketing process. 5. Conclusion From the above we can deduce that the consumer is the essential foundation on which the market is built on, and this is because that the consumer is one of the main key parties in any transaction of any sale or purchase. The success of any organization is due to their ability of studying, understanding the consumer behavior, and the knowledge about their customers, needs and wants. The study of consumer behavior is not limited to only benefit the organization, but also to benefit the consumer as well. 6.
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